However, because of other SFA Program requirements, there are two

instances when crediting institutional funds labeled as SFA Program
funds to a student’s account in advance of receiving the actual SFA
Program funds will not result immediately in an SFA disbursement:
Exceptions
◊ If a school credits a student’s account with the institutional
funds in advance of receiving SFA Program funds earlier than
10 days before the first day of classes of a payment period, the
SFA disbursement occurs on the tenth day before the first day of
classes. See the example below. (This provision corresponds to
the early disbursement requirements. See page 3-66.)

◊ For a student whose loan funds are subject to the 30-day
disbursement delay, if a school credits the student’s account
with institutional funds in advance of receiving SFA Program
funds earlier than 30 days after the first day of the payment
period, the SFA loan disbursement occurs on the 30th day after
the beginning of the payment period.

Example Advance credit to account
Pell Grant disbursement
occurs

August 1 August 22 September 1

school posts credit 10 days before first day of classes
marked as Pell Grant first day of
funds to student's account classes

In addition, if a school simply makes a memo entry for billing purposes or
credits a student’s account and does not identify it as an SFA credit (for
example, an “estimated Federal Pell Grant”) the disbursement does not
occur until the posting is subsequently converted to an actual credit. If the
posting is never converted to an actual credit, it never becomes an SFA
Program disbursement.

When a school disburses SFA Program funds to a student by crediting a Disbursement
student’s account, it may only do so for allowable charges. Funds in by crediting a
excess of the allowable charges must be paid directly to the student, student’s
unless otherwise authorized by the student. (An exception for the account
payment of prior year charges is discussed on page 3-69.)